Indices break the 4-day winning streak; Nifty ends below 12,100

Indian market consolidated after 4-days of fierce gains which pushed benchmark indices above crucial resistance levels. The Sensex reclaimed 41,000 while Nifty50 also climbed above Mount 12K.

After falling about 5 percent or 587 points including the Budget Day losses in the week gone, Nifty50 managed to recover 437 points in this week.

Let’s look at the final tally on D-Street – the S&P BSE Sensex fell 164 points to 41,141 while the Nifty50 closed 39 points lower at 12,098 on Friday. For the week, the S&P BSE Sensex rose 3.5 percent while the Nifty50 rallied 3.75 percent.

Sectorally, the action was seen in the S&P BSE Healthcare index, followed by the S&P BSE Consumer Durables, and the metal index while profit-taking was seen in the S&P BSE Realty index, followed by the Energy, Auto, and Telecom index.

Broader markets outperformed as the S&P BSE Midcap index rose 0.44 percent while the S&P BSE Smallcap index gained 0.75 percent.

On a day when both Sensex and Nifty witnessed profit-taking at higher levels more than 100 stocks hit a fresh 52-week high on the BSE that include names like Shree Cement, Hawkins, Bajaj Finance, SRF, Divi’s Laboratories, PVR, Bata India, Pidilite Industries, and Ajanta Pharma.

Experts are of the view the knee-jerk reaction was largely due to muted global cues and profit-taking at higher levels. The momentum should resume as long as Nifty50 holds above 12000 levels.

“In spite of the positive monetary policy which will spur growth in the economy, the market has turned flattish due to Novel coronavirus issue hurting the growth of the world’s second-largest economy,” Vinod Nair, Head of Research at Geojit Financial Services told .

“Positive Q3 result, liquidity boost and fiscal support will bring stability in the domestic market during the medium term,” he said.

Top Nifty gainers: Hindalco, ONGC, NTPC, and Zee Entertainment

Top Nifty losers: IndusInd Bank, Tata Motors, M&M, and Eicher Motors

Stocks and Sectors:

Sectorally, the S&P BSE Healthcare index rose 1.6 percent, followed by the S&P BSE Consumer Durables index that gained 1.3 percent, and the S&P BSE IT index rose 0.65 percent.

Profit taking was seen in the S&P BSE Realty index that fell 1.9 percent, followed by the S&P BSE Auto index that was down 1.06 percent, and the S&P BSE Energy index fell 0.94 percent.

Volume Spike of 100-400% was seen in Coal India, NCC, Voltas, Bata India, and Aurobindo Pharma.

Long Buildup – Divi’s Laboratories, Escorts, Torrent Pharma, Voltas

Short Buildup – Manappuram Finance, MRF, Lupin

Stocks in the news:

Aurobindo Pharma: Share price of Aurobindo Pharma jumped over 6 percent after the company’s net profit for the quarter ended December 31, 2019 fell marginally by one percent to Rs 705.3 crore against Rs 712.2 crore during the corresponding period last fiscal.

Tata Teleservices: Share price of Tata Teleservices zoomed 20 percent after the department of telecom approved the merger of its consumer mobile business with Bharti Airtel.

GE T&D: Shares of GE T&D India ended 2 percent higher after it bagged a contract by state-run Power Grid Corporation for constructing 765-kiloVolt (kV) Gas-Insulated Substation (GIS) bays at Phagi in Jaipur district of Rajasthan

Symphony share prices rose nearly 10 percent after the company had posted strong numbers for the quarter ended in December 2019 (Q3FY20).

Venkys share price slipped 4 percent after the company had reported net loss at Rs 5.9 crore in the quarter ended in December.

Technical view:

Nifty50 formed a Bearish Engulfing pattern on the daily charts

Experts feel that there could be a possibility of further downside if Nifty50 trades below 12,160 levels in the coming week as well.

The near term outlook is tilted towards bears as MACD gave a bearish crossover or triggered a sell signal on charts.

On the downside, the first support is placed at 11,950 while on the upside, a close above 12160 could take the index towards 12,266.

Three levels: 11950, 12073, 12200